The Enquirer understands leading underwriters are limiting cover at very low levels or not offering insurance at all.
The offsite sector has been rocked recently by a string of company failures and closures.
Big names including Caledonian Modular, House by Urban Splash and Mid Group have all gone under this year while Countryside Partnerships is closing one of its three MMC factories after racking-up huge losses.
One industry expert said: “It has been a tough few months for the offsite sector and it looks like credit insurers are now getting cold feet.
“We are being offered only limited cover on even big name firms so there is a lot of risk at the moment for firms down the supply chain.
“Everyone agrees that offsite is the future for construction but a lot of firms have been trying to run before they can walk.
“It seems like a constant stream of bad news but hopefully most will get through this tricky period and construction will reap the benefits of a better way of doing things.”
